What financial instruments, besides cash equivalents, are mentioned as having carrying amounts that approximate fair value for Remax?

According to Remax's 2025 Franchise Disclosure Document, the carrying amounts of several financial instruments, net of allowances, approximate fair value due to their short-term nature. These instruments include accounts and notes receivable, accounts payable, and accrued expenses, in addition to cash equivalents.

For a prospective Remax franchisee, this means that the stated book values of these assets and liabilities are considered to be reasonably close to their actual market values. This is a common accounting practice for short-term assets and liabilities because their values are less likely to fluctuate significantly over a short period.

Specifically, the FDD mentions that Remax provides limited financing of certain franchise sales through the issuance of notes receivable, with associated interest recorded as "Interest income." Amounts collected on these notes receivable are included in "Net cash provided by operating activities." This indicates that Remax may offer financing options to help new franchisees get started, which could be a significant benefit for those who need assistance with initial funding. Remax also records estimates of expected credit losses against its accounts and notes receivable based on historical loss experience and reasonable forecasts.